USFD vs MCD

For growth investors, US Foods Holding Corp.

(USFD) is the stronger pick with 4. 1% revenue growth year-over-year, versus 1. 7% for McDonald's Corporation (MCD). McDonald's Corporation (MCD) offers the better valuation at 24. 9x trailing P/E (21. 5x forward), making it the more compelling value choice. Analysts rate US Foods Holding Corp. (USFD) a "Buy" — based on 25 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, McDonald's Corporation (MCD) is the cheapest at 24.

9x versus US Foods Holding Corp. at 31. 3x. On forward P/E, US Foods Holding Corp. is actually cheaper at 19. 3x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, US Foods Holding Corp.

(USFD) delivered a total return of +129. 4%, compared to +34. 4% for McDonald's Corporation (MCD). Over 10 years, the gap is even starker: USFD returned +269. 5% versus MCD's +158. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), McDonald's Corporation (MCD) is the lower-risk stock at 0.

11β versus US Foods Holding Corp. 's 0. 50β — meaning USFD is approximately 350% more volatile than MCD relative to the S&P 500.

By revenue growth (latest reported year), US Foods Holding Corp.

(USFD) is pulling ahead at 4. 1% versus 1. 7% for McDonald's Corporation (MCD). On earnings-per-share growth, the picture is similar: US Foods Holding Corp. grew EPS 45. 5% year-over-year, compared to -1. 5% for McDonald's Corporation. Over a 3-year CAGR, USFD leads at 5. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

McDonald's Corporation (MCD) is the more profitable company, earning 31.

7% net margin versus 1. 7% for US Foods Holding Corp. — meaning it keeps 31. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MCD leads at 45. 2% versus 3. 0% for USFD. At the gross margin level — before operating expenses — MCD leads at 56. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, US Foods Holding Corp.

(USFD) trades at 19. 3x forward P/E versus 21. 5x for McDonald's Corporation — 2. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCD: 24. 0% to $352. 25.

In this comparison, MCD (2.

4% yield) pays a dividend. USFD does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, McDonald's Corporation (MCD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

11), 2. 4% yield, +158. 5% 10Y return). Both have compounded well over 10 years (MCD: +158. 5%, USFD: +269. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (USFD (Consumer Defensive) and MCD (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

MCD pays a dividend while USFD does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.